Jul 29, 2020 (IAM Newswire via COMTEX) -- In 2019, the global EV market was valued at $162 billion. This figure is expected to reach $803 billion by 2027. The IMF forecasts that global economy will expand by 5.4% next year. But global EV sales are expected to increase 36% year over year in 2021. This optimism also contributed to the skyrocketing of Tesla's /zigman2/quotes/203558040/composite TSLA +2.05% stock price which is up 263% on a year-to-date basis. But while many associate EVs with Tesla's brand, the traditional automakers such as General Motors /zigman2/quotes/205226835/composite GM -0.88% are also gearing up for the electric race.
In June, Tesla's Model 3 outpaced all other EVs in China, the world’s largest car and EV market. GAC Aion S, Buick Velite 6, BYD Qin Pro EV, Nio's /zigman2/quotes/204905836/composite NIO +0.58% NIO ES6 and Bayerische Motoren Werke AG /zigman2/quotes/200850296/delayed BMWYY -2.94% BMW 530Le also made it to the list. Interestingly, no other foreign car maker besides Tesla and BMW made it into the top 15 as Volkswagen's /zigman2/quotes/204431732/delayed VWAGY -2.34% Passat PHEV made it to 18 [th] place . With its new biggest factory yet that will be built in the ecological paradise of Austin, Texas, Tesla will have even more room to grow!
No matter how big Tesla gets, it still doesn't have the history of traditional automakers such as Detroit's Big Three that have not given up on the electric race. GM plans to invest $20 billion in EVs through 2025. But besides selling eight times more vehicles last year, General Motors has a tremendous advantage over Tesla when it comes to production, size, infrastructure and resources. If it plays its cards right, GM should be able to play the long game.
But although it beats Tesla as well as Nikola /zigman2/quotes/208704275/composite NKLA -7.64% and Nio in 'traditional' metrics, it doesn't have their status of a market disruptor. But instead of trying to compete in EV branding, GM simply needs to focus on its strengths and innovate. In January, the company announced its first all-EV plant, a $2.2 billion worth investment.
GM is a dinosaur and a relic of the internal-combustion era but it has a plan in place to leverage its resources, scale and experience so it can maintain its status in the next generation of the auto industry.
Only last week, The Volkswagen ID.3 EV briefly became VW's top-selling retail car in Germany. This is only one year after the world's largest car maker started taking deposits for its first electric model. The German giant is also strengthening its efforts in China to take advantage after Beijing's subsidy cuts. EV production will be at the forefront of its post-pandemic strategy in China as already in May it announced it will pump EUR2 billion euros to get a stake two Chinese EV players.
Back home, Germany recently doubled its subsidy for electric vehicles. EVs are central to its stimulus package that amounts to EUR130bn and aims to help the economy recover from the harm caused by the pandemic. This kind of support can only boost the giant carmaker's effort to take on Tesla.
Franchise Holdings International's subsidy Worksport will enhance the world will solar-powered pickup truck tonneau covers. The company recently announced it completed a move to a larger facility in China. Besides more factory space and room for additional growth, Worksport also gained better access to materials and major transportation lines. In addition, this Chinese facility has nearly completed a project that was initiated in the last quarter of the fiscal 2019. This improvement will enhance the design and revamp both current as well as newest offerings.
Its three new technologically advanced light truck tonneau covers will soon debut in the U.S. And we know what the country's most popular vehicle is as Ford's /zigman2/quotes/208911460/composite F +0.11% F-150 has been the best-selling truck and vehicle for more than 40 years! An electric version of the legendary F-150 will also be brought to life. The complex yet affordable technology that Worksport will bring to the table can only further speed up electrification.
Forecasts are difficult to make amid the current uncertainty. The potential impact of a second wave of COVID-19 that could manifest itself in the fall is forcing many companies to withdraw their guidance or at least be cautious in their forecasts. The second wave could be detrimental for the auto industry. Although EVs would be impacted, their development would only be slowed down as without the slightest doubt – the future is electric!
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